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Home My WebLink Aboutlist- AUG-12-2004 09:33 CITY OF MIAMI P. 07 Page l of 4 489.145 Guaranteed energy performance savings contracting.-- (1) SHORT TM.E.--This section may be cited as the "Guaranteed Energy Performance Savings Contracting Act," (2) LEGISLATIVE FINDINGS. --The Legislature Finds that investment In energy conservation measure in agency facilities can reduce the amount of energy consumed and produce immediate and long-term savings. It is the policy of this state to encourage agencies to invest in energy conservation measures that reduce energy consumption, produce a cost savings for the agency, and improve the quality of indoor air in public fadlitiee and to operate, maintain, and, when economically feasible, build or renovate existing agency Facilities in such a manner as to minimize energy consumption and maximize energy savings. It is further the policy of this state to encourage agencies to reinvest any energy savings resulting from energy conservation measures in additional energy conservation efforts. (3) DEFINITIONS. --As used In this section, the term: (a) "Agency" means the state, a municipality, or a political subdivialon. (b) "Energy conservation measure" means a training program, facility alteration, or equipment purchase to be used in new construction, including an addition to an existing facility, which reduces energy or operating casts and includes, but is not Limited to: 1. Insulation of the fadlity structure and systems within the facility. 2. Storm windows and doors, caulking or weethvrstrippinp, muitiglazed windows and doors, heat - absorbing, or heat -reflective, glazed and coated window and door systems, additional glazing, reductions in glass area, and other window and door system modifications that reduce energy consumption. 3. Automatic energy control systems, 4. Heating, ventileting, or air-conditioning system modifications or replacements. 5. Replacement or modifications of Lighting fixtures to Increase the energy efficiency of the lighting system, which, at a minimum, must conform to the applicable state or local building code, 6. Energy recovery systems. 7. Cogeneration systems that produce steam or forms of energy such as heat, as well es eteetrIcIty, For use primarily within a facility or complex of fadiities. 8. Energy conservation measures that provide Tong -term operating cost reductions or significantly reduce Btu consumed. 9. Renewable energy syste ~ns, such as solar, biomass, or wind systems. 10. Devices that reduce water consumption or sewer charges. 11 Storage systems, such as fuel cells and thermal storage. 12, Generating technologies, such es microturbines. 13. Any other repair, replacement, or upgrade of existing equipment. (c) "Energy cost savings' means a measured reduction in the coat of fuel, energy consumption, • 03- 250 hits•//unarty Clean pro nnv/Cr#r.rrw.R.,A......c a. AUG-12-2004 09:34 CITY OF MIAMI P.WW £ awe va and stipulated operation and maintenance created from the implementation of one or more energy conservation measures when compared with an established baseline for the previous cost of fuel, energy consumption, and stipulated operation and maintenance. (d) 'Guaranteed energy performance savings contract" means a contract for the evaluation, recommendation, and implementation of energy conservation measures, which, at a minimum, shall tndude: 1. The design and inetal'ation of equipment to implement one or more of such measures and, If applicable, operation and maintenance of such measures. 2. The amount of any actual annual savings that meet or exceed total annual contract payments made by the agency far the contract. 3. The finance charges Incurred by the agency over the life of the contract. (e) 'Guaranteed energy performance savings contractor' means a person or business that is licensed under chapter 471, chapter 481, or this chapter, and is experienced In the analysis, design, implementation, or installation of energy conservation measures through energy performance contracts. (4) PROCEDURES, -- (a) An agency may enter into a guaranteed energy performance savings contract with a guaranteed energy performance savings contractor to significantly reduce energy or operating costs of an agency facility through one or more energy conservation measures. (b) before design and installation of energy conservation measures, the agency must obtain from a guaranteed energy performance savings contractor a report that summarizes the costs associated with the energy conservation measures and provides an estimate of the amount of the energy cost savings. The rgency and the guaranteed energy performance savings contractor may enter Into a separate agreement to pay for costs associated with the preparation and delivery of the report; however, payment to the contractor shall be contingent upon the report's projection of energy cost savings being equal to or greater than the total projected costs of the design and installation of the report's energy conservation measures. (c) The agency may enter into a §uaranteed energy performance savings contract with a guaranteed energy performance savings contractor if the agency finds that the amount the agency would spend on the energy conservation measures will not likely exceed the amount of the energy cost savings for up to 20 years from the date of installation, based on•the' Iife cycle coat calculations provided in a. 255.255, If the recommendations in the report were followed and if the qualified provider or providers give a written guarantee that the energy cost savings will meet or exceed the costs of the system. The contract may provide for installment payments fora period not to exceed 20 years. (d) A guaranteed energy performance savings contractor must be selected in compliance with s. 287.055; except that if rawer than three firms are qualified to perform the required services, the requirement for agency selection of three firms, as provided in s. 2E7.055(4)(b), and the bid requirements of s. 287.057 do not apply. (e) Before entering into a guaranteed energy performance savings contract, an agency must Provide published notice of the meeting In which it proposes to award the contract, the names of the parties to the proposed contract, and the contract's purpose. (f) A guaranteed energy performance savings contract may provide for financing, including tax exempt financing, by a third party. The contract for third party financing may be separate from the energy performance contract. A separate contract for third party finendng must include a provision that the third party financier must not be granted rights or privileges that exceed the 0$_ 25Q n . `' MMnI�1RYn. �w/.w4+d nw�.IC�Ma,.r�_1:.. P AUG-12-2004 09:34 CITY OF MIAMI P.09 •a0a VZi. rights and privileges available to the guaranteed energy Performance savings contractor. (g) In determining the amount the agency will finance to acquire the energy conservation measures, the agency may reduce such amount by the application of any grant moneys, rebates, or capital funding available to the agency for the purpose of buying down the cost of the guaranteed energy performance savings contract. However, in calculating the life cycle cost as required In paragraph (c), the agency shall not apply any grants, rebates, or capital funding. (5) CONTRACT PROVISIONS. -- (a) A guaranteed energy performance savings contract must include a written guarantee that may include, but is not limited to the form of, a fetter of credit, insurance policy, or corporate guarantee by the guaranteed energy performance savings contractor that annual enemy cost savings will meet or exceed the amortized cost of energy conservation measure*. (b) The guaranteed energy performance aevings.cantract must provide that all payments, except obligations on termination of the contract before its expiration, may be made over time, but not to exceed 20 years from the date of complete insiallation and acceptance by the agency, and that the annual savings are guaranteed to the extant necessary to make annual payments to satisfy the guaranteed energy performance savings contract. (c) The guaranteed energy performance savings contract must require that the guaranteed enepublic construction bonderformance ings to the agency for its faithful pentractor to whom the ntract is rformance as awarded prorequired e e . 25 percent required by s. 2SS.i75. (d) The guaranteed energy performance savings contract may contain a provision allocating to the parties to the contract any annual energy cost savings that exceed the amount of the energy cost savings guaranteed In the contract. (e) The guaranteed energy performance savings contract shall require the guaranteed energy performance savings contractor to provide to the agency an annual reconciliation of the guaranteed energy cost savings. If the reconciliation reveals a shortfall in annual energy cost savings, the guaranteed energy performance savings contractor Is liable for such shortfall. If the reconciliation reveals an excess in annual energy .cog savings, the excess savings may be allocated under paragraph (d) but may not be used to cover potential energy cost savings shortages in subsequent contract years. (f) The guaranteed energy performance savings contract must provide for payments of not less than one -twentieth of the price to be paid within 2 years from the date of the complete Installation and acceptance by the agency, and the remaining costs to be paid at least quarterly, not to exceed a 20-year terra, based on life cycle coca calculations, (g) The guaranteed energy performance savings contract may extend be d the fiscal yew in which it becomes effective; however, the term of any contract expires at theme end of each fiscal Year and may be automatically renewed annually for up to 20 years, subject to the agency making sufficient annual appropriations based upon continued realized energy savings. (h) The guaranteed energy performance savings contract must stipulate that it does not constitute a debt, liability, or obligation of the state. (6) PROGRAM ADMINISTRATION AND CONTRACT REVIEW. --The Department of Management Services, with the assistance of the Office of the Comptroller, may, within available resources, Provide technical assistance to state agencies contracting for eeno asures and engage in other activities considered appropriate by the department for promoting conservationand facilitating guaranteed energy performance contracting by state agencies. The Office of the Con the assistance of the Department of Management Services, may, within available resources, with develop model contractual and related documents for use by state agencies. Prior to entering into a guaranteed energy performance savings contract, any contract or lease for third - or any combination of such contracts, a state agency shall submit such proposed party Tin, contract ory leaseee hftudlwWw,fiienatr. env/Cretletairn.,a.... .t , .. 03' 250 AUG-12-2004 , 09:34 - CITY OF MIAMI P.10 4ffilip.tutor to the Office of the Comptrioller for review and approval. 4 OS- 250 TOTAL P.10